Global operations and logistics Case Study Example | Topics and Well Written Essays - 2500 words

Global operations and logistics - Case Study Example Each and every store of Home Depot operates with the concept of large warehouse style buildings. The largest store of Home Depot is situated in Union New Jersey. The organization achieved huge popularity due to its â€Å"do-it-yourself† concept. According to the concept, the home owners and several individuals generally purchase home improvement products and tools. Then they repair or improve their home on their own. The organization not only prioritizes their customer service through this concept but also provides effective clinical and practical workshop training and development to the customers in order to enhance their customer service process. This â€Å"do-it-yourself† concept helped the organization to retain their existing clients. In addition to this, Home Depot got success to attract new customers through effective customer service (Ferrell and Hartline, 2008, p.584). The owners of the organization encouraged the sales associates to develop strong relationship with the customers to maintain their leading position in the competitive marketplace. This report will analyze the logistics and customer service activities of home depot throughout the years. Moreover, the study will discuss about the merchandising, store operation and vendor management activities of Home Depot in order to draw an effective conclusion. Historical and Current Development in terms of Production, Operation and Marketing For the first 20 years, Home Depot became popular and well recognized due to its focus on customer services, significant sales growth rate and dynamic entrepreneurial spirit. Initially, the organization used the concept of big box format stores. All the customers could find and purchase all the necessary home improvement products. They introduced â€Å"Do it yourself† concept to enhance their customer service. The owners of the organization encourage the sales associates to take care of the satisfaction level of the customers to develop a signi ficant client base (Paper, 2007, p.39). Home Depot organized several effective workshop training and development programs for the customers to fix home problems by their own. These strategies helped the organization to secure their leading spot for 20 years. In 2001, CEO Nardelli changed the product development and distribution process due to rising cost, falling sales and stiffening competition. The organization started to provide specialized goods and services to the smaller professional customers. The CEO had the intention to attain professional business growth. Nardelli implemented several change strategies to improve the productivity. He motivated headquarter of Home Depot to recruit talented and skilled associates to bring more specialization. Moreover, he appealed for simplification of the job function of each and every store associate. He also worked hard to standardize the logistics activity. Introduction of the concept of â€Å"inventory velocity† helped the organiz ation to track their stocks effectively. CEO Nardelli made a decision to employ 227, 000 associates to reform its in-store operation activities. In spite of achieving significant growth rate, CEO Nardelli tried to make some changes in business operation to secure future growth rate. Organizations like Walmart implemented advanced technology in their business operation